There will come a time in your life when you’ll need to start preparing for retirement. As well as investing money into your retirement, you’ll have to consider at what age to finish working for good. American retirement varies slightly state-by-state, but this article will give you a good idea of the average age of retirement in US.
Average general age
In general, the average age for retirement, as shown in data by the U.S. Census Bureau, is 65 for men, while women retire slightly earlier, at 63. The average retirement length spans over 20 years, so average retirement is still fairly early if you consider the data.
Retirement age by state
State-by-state, the average age of retirement in US differs a little. Unsurprisingly, in states where the general cost of living is a lot higher, people tend to retire at an older age. This is most likely because people feel they need to work longer to be able to afford to retire where they live.
States that have fewer job opportunities generally have a lower average age of retirement, most likely because people are forced to take an early retirement. However, the average retirement age doesn’t rise or fall dramatically in any state – it’s 62 at lowest and 65 at highest.
Changing retirement expectations
Thanks to new medical and technological advancements, we’re now living longer than we ever have before, and staying healthier into older age. This means that we’re expected to work longer and retire later, simply because we can. Into the future, it’s most likely that the average retirement age will continue to climb.
Planning your retirement
You’re ultimately in control of your retirement age, but you might want to take a few things into consideration when deciding when to retire, including your pension and your current working situation.
The age at which you’ll receive retirement benefits depends on the year you were born. If you were born earlier, you’ll be able to receive retirement benefits from a younger age than if you were born later on. Some people might choose to take private benefits until their state benefits kick in.
Some people might also prefer to carry on working if they enjoy their job and are physically able to continue with it. You may wish to stick at your current job, but reduce your hours of work. Many employers will be happy to negotiate the best working situation for you.
It’s never too early to start putting things in place for your retirement. As cliche as it sounds, time moves far faster than you might expect it to, and you don’t want to be unprepared for your retirement when it comes around.
Start building up your own reserves of cash, as most people find that state retirement benefits aren’t enough for them to live as freely as they’d like in retirement. The earlier you can get started, the better.